TRACKPAD

VRL Logistics, the largest pan-India surface logistics and parcel delivery service provider is planning to start a new regional airline. VRL Logistics’ promoters Vijay Sankeshwar and Anand Sankeshwar on May 23 said they want to incorporate a separate company to start a regional airline and they also plan to sell a minority stake in VRL Logistics. The company may sell as much as 2% in the logistics company to fund their entry into civil aviation sector. The Hubli-based company has reported a 32 per cent fall in its net profit in the March quarter. At present, there are three major regional airlines in India — Air Costa, Air Pegasus and TruJet.

Piramal Fund Management (PFM), part of Piramal Enterprises, has invested Rs 425 crore in the Lodha Azzuro residential project in Mumbai’s Parel area to fund its construction.

Lodha group, is constructing the project in a 500,000 sq ft.  The deal with Piramal has been structured as a fixed return debt investment, with periodic coupon payments.

The investment is fruitful investment for Piramal as the 40 per cent of the project is already sold in the construction phase.

Somany Ceramics has moved higher to touch its 52-week high of Rs 495. Stocks on May 23 was up by 9 per cent on the BSE, after reporting a strong 76 per cent year on year (YoY) growth. The company has managed to post some strong earnings this quarter, wherein the net profits for this quarter stands at Rs 26 crores. Net sales grew by 12.7 per cent and stands at Rs 514 crore on a (YoY) basis.

EBITDA margin has impressed and stands at Rs 8.9 per cent as compared to 6.8 per cent previously. Low gas prices have made the company post a robust numbers this quarter.

The company in the last quarter has raised Rs 120 crores via private placement and the company will use it for the expansion of its plants.

Himachal Futuristic Communications (HFCL) has emerged as the lowest (L1) bidders for supplying equipment to Bharat Sanchar Nigam (BSNL). The company has put in price bids, combining Rs 4224 crore for supplying optical transmission devices (Rs 1448 crore) and geographical information-based network management systems (Rs 2776 crore).

Sterlite Technologies also emerged as L1 bidder for supplying equipment to BSNL. The company has put in price bids aggregating Rs 8400 crore for supplying core IP gear to BSNL.

Rajesh exports bagged Rs 1053 crore order 

Rajesh Exports has won a Rs 1053 crore export order from the UAE on May 24. The company will design a range of gold and diamond decorated jewellery and medallions from the UAE. Its new order will be executed from manufacturing facility in Bengaluru and is to be completed by August 31. 

In month of April, Rajesh Exports has won an export order of Rs 780 crore from Singapore. The order for designer range of gold and diamond studded jewellery and medallions from Singapore. This order is to be completed by July 15 and will be executed at the manufacturing facility in Bangalore.

 In the Union Budget of 2014-15, country’s Finance Minister announced the implementation of an effective bankruptcy code. In Loksabha during the first week of May, the Bill was passed. It comes as a big relief for all concerned even as GST Bill is still stuck in the process to be cleared. With the bankruptcy code passed, it will certainly boost business sentiments.

 The Bill will empower creditors, inclusive of those who are not banks.  The focus will be on ease of doing business with this bill; and the provisions in the bill will help unlock the distressed corporate assets for the creditors. The creditors will now be able to recover debts faster and smoother before the debtors sink completely and the assets lose majority of their value. 

The code proposes to repeal the Presidency Towns Insolvency Act, 1909, and Provincial Insolvency Act, 1920, as well as amend 11 legislations, including the Companies Act, 2013; Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; Limited Liability Partnership Act, 2008, etc. Policy-related aspects are being addressed in the code and procedural aspects will be dealt under delegated legislations for flexibility.

The code has taken the positive attributes from the bankruptcy system that of the US and the UK, like providing for a moratorium period during the resolution process, time-bound insolvency process etc.

In the move to reduce the capital expenditure, the first 4G service provider Bharti Airtel has divested about Rs 11318 crores. Bharti Airtel has entered into an agreement with Helios Towers Africa (HTA) for divestment of about 950 towers in the Democratic Republic of Congo (DRC). Bharti has 14,000 towers in Africa, of which it has divested 8,300 for nearly $1.7 billion (Rs 11,318 crore).

However, the company will have a have full access to towers from Helios Towers Africa (HTA) under a long-term lease contract. The deal is a lucrative one and Airtel is in a win-win situation. The divesture should reduce the overall expenditure and the agreement to have access on the sold tower will not impact the top line.

The deal will significantly reduce Airtel’s ongoing capital expenditure on passive infrastructure and also mitigate the proliferation of towers through enhanced sharing. The agreement is subject to statutory and regulatory approvals.

The agreement is in line with the philosophy of the firm of divesting passive infrastructure and promoting sharing of towers to enhance operational efficiencies that will further the growth of telecom services.